Patents & I.P.

On July 2, 2004, GPS Industries purchased the patents to Differential GPS in Australia, Japan and eleven European Nations. On November 19, 2004, the Company also acquired the patents to GPS-for-golf in the United States and in Canada. These important assets provide broad coverage for the Company's products in this area and also generate significant recurring revenue through licensing fees paid to the Company by competitors in the golf industry. GPSI-owned Patents have been licensed to six companies and currently generate ongoing annual revenue. Management expects to license the Patents on a non-exclusive basis to other GPS-based golf system providers and believes the Company is in a strong position to enforce these patents against infringers. Supporting this belief, in November 2006 the Company secured the equivalent of a US$1.2 million dollar patent-infringement settlement in a lawsuit brought in London County Court, UK.

In addition to those referenced above, the Company has filed for and/or obtained certain other patents, which enhance both the competitive advantage of the Company's products and its operating position. These include:

• Hand Held communicator patents issued in the U.S. on February 1, 2000, in Canada on September 29, 2000; and in the United Kingdom on November 30, 1999.
  
  
• Golf course communication system and method patent application in the US and a PCT application in the European Community which is awaiting a serial number and filing receipt.
  
  
• Endurable Sports PDA with communications capabilities and accessories.
  
  
• Portable GPS Unit patent, pending.
  
  
• Cart mounted GPS Unit patent, pending

The Company continues to develop new and patentable technology solutions opportunities.